The Inside Agenda Blog

The Samsung Controversy

by Mark Brosens Tuesday February 2, 2010

The Samsung deal discussed on tonight’s program has proved quite the controversy in Ontario’s newspapers. Those for and against this deal have been filling newsprint as they try to make their case. Here is a recap of some of the articles on the Samsung deal that have people talking.

 

In an editorial, the Toronto Star argued that the Samsung deal is a bargain for Ontario. The Star writes that Ontario will get $7-billion in investment while only paying Samsung $437-million in subsidies.

 

Lawrence Solomon of Energy Probe wrote a stinging letter in the National Post on the Samsung deal. He argued that Spain’s history with government-created green energy jobs suggests that two jobs will be lost in Ontario’s larger economy for every one job the Samsung deal creates. Solomon also argues that Texas’ experience with green energy demonstrates that without government intervention green energy is not economically viable. 

 

Tyler Hamilton from the Toronto Star contends that the Samsung deal keeps green jobs from migrating to the United States. Hamilton thinks the Samsung deal is not perfect, but will create green jobs here. He writes, “the province's strategy in this regard is quite clever, even if it is somewhat sneaky…The McGuinty government is, in effect, using electricity rates to cover the cost of a major economic development strategy.”

 

However, one of the most fascinating articles that has people talking about the Samsung deal has nothing to do with Samsung or Ontario at all. The Economist coincidentally published a story on how German electricity prices are soaring as a result of their heavy investment in solar power. In the past Germany was considered a green power leader, but some are suggesting that energy prices are so high in Germany that this may become a political issue.

 

So now that you’ve read this primer and watched tonight’s program, what do you think? Do you support Ontario’s green energy deal with Samsung?

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